Location: Sacramento--Roseville--Arden-Arcade, CA | Metro: Sacramento--Roseville--Arden-Arcade, CA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,990 |
| 1 Bedroom | $2,050 |
| 2 Bedrooms | $2,520 |
| 3 Bedrooms | $3,310 |
| 4 Bedrooms | $3,810 |
| 5 Bedrooms | $4,420 |
| 6 Bedrooms | $4,950 |
| 7 Bedrooms | $5,346 |
| 8 Bedrooms | $5,613 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,520 | $391,173 | 0.64% | D |
| 3BR | $3,310 | $505,554 | 0.65% | D |
U.S. Census Bureau data (2024)
The classification of ZIP code 95701 in Alta, California, hinges on the analysis of its yield potential and stability factors. With a Fair Market Rent (FMR) of $2120 for fiscal year 2024, and a median home value of $469,932, the area presents a moderate yield opportunity. The FMR figure indicates the maximum amount a landlord can charge for rent under the Section 8 program, suggesting that rental income is capped at this level unless the property qualifies for other programs.
Stability in this context is influenced by the percentage of renters, which stands at 8.1%. This low figure suggests that the majority of residents in Alta own their homes, potentially leading to less consistent demand for rental properties. Additionally, the median household income is noted at $98,125, providing insight into the financial capacity of tenants. Higher incomes generally correlate with greater stability, as they imply a stronger ability to meet rental obligations.
To determine whether 95701 is suitable for a high-yield/low-stability "flip-style" market, a steady-cashflow zone, or something in between, we must consider the interplay between these metrics. The low percentage of renters (8.1%) and the absence of data on days on market (DOM) suggest that the area is not highly dynamic in terms of rental turnover. This characteristic leans towards a steadier cash flow environment rather than a high-risk, high-reward scenario typical of flip-style markets.
The median home value being significantly higher than the FMR ($469,932 vs $2120) also supports the notion of a steady-cashflow zone. Landlords in this area should anticipate a relatively stable tenant base due to the higher median income, but the yield will be limited by the FMR cap.
In conclusion, ZIP 95701 in Alta, CA, is best classified as a steady-cashflow zone. While it offers some yield potential, particularly for those who can leverage the FMR effectively, the stability indicators—such as the low percentage of renters and higher median income—point towards a market where consistency is prioritized over rapid appreciation or high turnover rates.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.